Home Builders Urge U.S. Relief Over Soaring Lumber Prices
WASHINGTON, DC — The National Association of Home Builders is urging the Biden Administration and Congressional leaders to help mitigate a “growing threat to housing and the economy” by urging domestic lumber suppliers to ramp up production in an effort to ease shortages that are contributing to unprecedented price volatility in the lumber market.
“Soaring lumber prices are adding thousands of dollars to the cost of a new home, pricing out millions of potential home buyers and impeding the residential construction sector from moving the economy forward, according to the Washington, DC-based NAHB, which also urged U.S. officials to make it a priority to end tariffs on Canadian lumber shipments into the U.S.
“Lumber price spikes are not only sidelining buyers during a period of high demand, they’re causing many sales to fall through and forcing builders to put projects on hold at a time when home inventories are already at a record low,” said NAHB Chairman Chuck Fowke, noting that lumber prices hit a record high last week and are up more than 170% over the past 10 months.
“Housing has been an economic bright spot amid the COVID-19 pandemic, but the industry’s potential to lead the economy forward is limited as long as lumber remains expensive and scarce,” Fowke said. “Clearly these price increases are unsustainable, particularly in light of a continued housing affordability crisis.
“Given this ongoing period of high demand, the Commerce Dept. should be investigating why output from lumber producers and lumber mills are at such low levels,” Fowke added.